Debt stood at around 117% of GDP in November, two points above the full-year target, weighed down by the €30,000 million the state has injected in government aid since March
Government debt picked up again in November after the slight slowdown in October data. In the penultimate month of the year, the debt burden of public administrations rose again to over 1.5 trillion euros. Specifically, according to data published this Tuesday by the Bando de España, the debt has risen to 1,506 trillion euros, which is about 8,000 million euros more than in the month of October, when the figure took a breather after the summer record.
Compared to November last year, the public debt has increased by 79,000 million euros, an increase of 5.6%.
In this way, the debt volume is once again reaching an all-time high and stands at around 117% of GDP, two points higher (115.2%) than the full-year target set by the government in the stability plan sent to Brussels sent . Much of this is due to the significant injection of public funds by the state in the form of state aid – some €30,000 million – to deal with the economic crisis caused by the war in Ukraine since last March.
The scenario proposed in the 2022-2025 Stability Program shows a gradual decrease in the deficit over the four years, until the debt-to-GDP ratio reaches 109.7% in 2025. For now, this debt-to-GDP ratio has remained about the same throughout the year. year, due to the country’s economic growth that reduces the percentage of debt despite the fact that the volume is higher in real terms.
The increase in debt in November is mainly due to the increase in government debt, which continues its upward trend that only broke in October due to the need to take on an additional spending effort due to the impact of the coronavirus crisis first and the war in Ukraine afterwards. For example, the national debt rose to 1.33 trillion euros in the penultimate month of the year, 7.3% more than a year ago.
For its part, the debt of the Autonomous Communities grew by 1.3% compared to a year ago to total EUR 316,500 million in November. Local corporations reduced their debt by 0.5% compared to last year to 22,200 million euros.
And the debt of Social Security administrations shot up 13% compared to November 2021 due to the loans made by the state to the General Treasury of Social Security to finance the fiscal imbalance. For example, the debt of the social security achieved its historic record at 106.2 billion euros.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
